Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Six Months Ended September 30, 2018
(Based on Japanese GAAP)
November 5, 2018
Company name:
TANABE ENGINEERING CORPORATION
Stock exchange listing: Tokyo
Stock code:
Representative:

1828
URL https://www.tanabe-ind.co.jp/
President and Representative Director
Yoshio Watanuki

Inquiries:

Director, Senior Executive officer andGeneral Manager of Corporate

Yuichi Gommori

Administration Division
Scheduled date to file Quarterly Securities Report:

November 13, 2018

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–No

Holding of quarterly financial results meeting:

NoTEL

025-545-6500(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended September 30, 2018 (from April 1, 2018 to September 30, 2018)(1) Consolidated operating results (cumulative)
Net salesSix months ended September 30, 2018
Six months ended September 30, 2017

Millions of yen
17,467
14,169Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
23.3
1,245
60.9
1,277
60.9
863
60.6
(5.6)
774 (16.3)
793 (19.8)
537 (21.1)

Earnings per share

Diluted earnings per share

Yen
80.65
50.22

Six months ended September 30, 2018
Six months ended September 30, 2017

Yen––(2) Consolidated financial positionTotal assets
As of September 30, 2018
As of March 31, 2018

Net assets

Millions of yen
30,38825,481Equity ratio

Millions of yen
13,981
13,371

Net assets per share%
46.0
52.5

Yen
1,306.57
1,249.56

2. Cash dividends
Annual dividends per share

Year ended March 31, 2018Year ending March 31, 2019

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
20.00

Yen
20.00

–

22.00

22.00

Year ending March 31, 2019 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2019 (from April 1, 2018 to March 31, 2019)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
35,000
14.5
1,700
24.7
1,800
30.7
1,300
34.8
121.481

4. Notes(1) Changes in significant subsidiaries during the six months ended September 30, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

Yes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2018

10,728,000 shares As of March 31, 2018

10,728,000 shares

Number of treasury shares at the end of the period
As of September 30, 201827,035 shares As of March 31, 201827,031 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2018

10,700,969 shares Six months ended September 30, 2017

210,701,173 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of March 31, 2018

As of September 30, 2018

AssetsCurrent assetsCash and deposits
Notes receivable, accounts receivable from completed
construction contracts and otherCosts on uncompleted construction contracts
Other inventories
Other
Allowance for doubtful accounts
Total current assets

3,131,818

2,461,416

13,385,815

17,230,512

647,691

2,043,083

254,694
225,224

220,597
209,120(1,308)(1,691)

17,643,935

22,163,038

Non-current assets
Property, plant and equipment
Buildings and structures

6,061,311

6,075,512

4,347,065
2,052,299

4,341,217
2,420,515

Leased assets
Construction in progress

370,580
25,132

342,338
174,797

Accumulated depreciation(6,300,225)(6,420,847)

Total property, plant and equipment

6,556,163

6,933,533

Intangible assets

117,686

113,673

Investments and other assets
Investment securities

501,579

539,884

Deferred tax assets
Other548,930
113,282

523,856
114,076

1,163,791

1,177,816

7,837,642

8,225,023

25,481,577

30,388,061

Machinery, vehicles, tools, furniture and fixtures
Land

Total investments and other assets
Total non-current assets
Total assets3

(Thousands of yen)
As of March 31, 2018

As of September 30, 2018

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts
and other
Short-term loans payable

5,918,505

6,941,813

995,295

3,420,000

Lease obligations
Accounts payable - other

28,911
1,087,890

28,3891,276,321

Accrued expenses
Income taxes payable

315,090
267,814

325,696
439,132

Advances received on uncompleted construction contracts
Provision for warranties for completed construction

445,185
28,793547,029
32,829Provision for loss on construction contracts
Provision for bonuses

24,061
854,326

6,990
775,820

Provision for directors' bonuses
Other

40,000285,281

20,000109,762

Total current liabilities

10,291,155

13,923,785

Non-current liabilities
Long-term loans payable

380,000

1,080,000

125,223
137,734

119,478
132,500

1,175,917

1,150,746

Lease obligations
Long-term accounts payable - other
Net defined benefit liability
Total non-current liabilities

1,818,875

2,482,725

12,110,030

16,406,510

Capital stock
Capital surplus

885,320
1,475,320

885,320
1,475,320

Retained earnings
Treasury shares

11,263,381(6,973)

11,911,376(6,977)

Total shareholders' equity

13,617,047

14,265,039

130,884

151,4453,548(379,934)(80,602)(354,330)

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4(245,501)(283,487)

13,371,546

13,981,551

25,481,577

30,388,061

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Six months ended

Six months ended

September 30, 2017

September 30, 2018

Net sales
Cost of sales

14,169,206
11,799,374

Gross profit

2,369,832

2,923,119

Selling, general and administrative expenses

1,595,765

1,677,748

774,066

1,245,371

Interest income
Dividend income

949
4,619

859
5,464

Land and house rent received
Foreign exchange gains

18,7107,659

18,451
7,374

Other7,273

14,218

Total non-operating income

39,212

46,368Interest expenses
Commitment fee

6,100
12,239

6,865
5,010

Other

1,127

2,431

Operating profit

17,467,626
14,544,507

Non-operating income

Non-operating expenses

Total non-operating expenses

19,467

14,308793,811

1,277,431

Gain on sales of non-current assets–

288

Total extraordinary income

–

288

362
650

720
2,222

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on disposal of non-current assets
Loss on sales of non-current assets
Loss on valuation of golf club membership–

1,8001,013

4,743

Profit before income taxes

792,798

1,272,976

Income taxes

255,339

409,927

Profit537,458

863,049

Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5––537,458

863,049

Consolidated statements of comprehensive income (cumulative)(Thousands of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

September 30, 2017

September 30, 2018537,458

863,049

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

41,054
21,03720,561(84,151)

Remeasurements of defined benefit plans, net of tax

27,87825,604

89,970(37,985)

Comprehensive income

Total other comprehensive income

627,429825,064

Comprehensive income attributable toComprehensive income attributable to owners of parent

627,429825,064––

Comprehensive income attributable to non-controllinginterests6